Reduce tariff from 50 percent to 15 percent, penalty on Russian oil should also be abolished.
New Delhi . India has presented its final proposal to America in trade talks. India wants the total 50 percent tariff imposed on it to be reduced to 15 percent and the extra 25 percent penalty imposed on buying crude oil from Russia should be completely eliminated. It is expected that a concrete decision will be taken in the new year from the ongoing talks between the two countries. A comprehensive bilateral trade agreement is under negotiation between the two countries. Commerce Secretary Rajesh Aggarwal says that the agreement can be agreed upon soon, although he did not give any specific time frame. This week a meeting was held in Delhi between the trade teams of India and America. The talks are taking place on two issues. First on a large and permanent trade agreement and second on a framework agreement to remove or reduce the 50 percent tariff imposed on India by the US.
If America reduces the 50 percent tax imposed on India to 15 percent and removes the 25 percent penalty on buying oil from Russia, then Indian goods will be cheaper in America, which will increase our exports there. Indian companies will benefit, will get more orders and employment opportunities may increase. More dollars will come to India, which will strengthen the economy. India will be able to buy cheaper oil from Russia without any fear, this will keep the prices of petrol and diesel under control. Relations between the two countries will improve and big trade agreements will become easier in the future. If America does not reduce the tariffs and also continues the penalties, Indian goods will remain expensive in America, which may reduce our sales. There will be pressure on some industries, profits may decrease and jobs may be affected. Buying oil from Russia will become expensive or difficult, which may increase fuel prices. Tension between the two countries may increase and the trade agreement may be delayed.
25 percent tariff due to buying Russian oil
America has imposed a total tariff of 50 percent on India. Of this, he calls 25 percent ‘reciprocal (tit for tat) tariff’. Whereas 25 percent has been imposed due to purchase of Russian oil. America says that this is helping Russia to continue the Ukraine war. India says that this penalty is wrong and it should be removed immediately.
There may be a decline in Russian oil purchases
There is also a reason for hope that the data coming in January may show a big decline in India’s Russian oil imports. US sanctions have come into effect on Russia’s two big oil companies Rosneft and Lukoil from November 21. After this, India’s oil import from Russia has started decreasing. India’s Russian oil import was about 17.7 lakh barrels per day in November, which has come down to about 12 lakh barrels per day in December. In the coming time it may go below 10 lakh barrels per day. After the Ukraine war, India became Russia’s largest oil buyer, which has been questioned many times by the Trump administration. US officials had alleged that India was indirectly funding the attacks on Ukraine by buying oil from Russia.
India wants relief like European Union
Now India is trying to reduce the remaining 25 percent tariff to 15 percent, so that India gets the same relief that the European Union is getting. If the tariff is higher than this, Indian exporters will suffer losses compared to other countries. For example, the US tariff on Indonesia was earlier 32 percent, which has been reduced to 19 percent. India clearly says that it should also get relief at the same level. India has given a clear message to America, the penalty on Russian oil should be abolished and the total tariff should be reduced to 15 percent. Now the ball is in America’s court and all eyes are on President Trump’s decision.
